Sub: Writing off of arrears of Central Excise, Service Tax and Customs duty -
Constitution of Committees to advise the authority for writing off of
arrears-reg.

Madam/Sir,

I am directed to invite reference to the instructions contained in Board's
Circular
No. 946/07/2011 dated 01st June, 2011 issued vide F. No. 296/10/2009-CX.9, on
the subject of write off of arrears of irrecoverable dues.

2. Vide the aforesaid Circular, Board had decided to constitute three -
member Committees of Chief Commissioners and Commissioners, which will examine
the proposals for write - off of irrecoverable arrears and recommend deserving
cases to the authority competent to order such write - off in terms of the
Board's Circular dated 21.9.1990.

3. In the 2nd (Rajaswa Gyan Sangam)- All India Annual Conference of Tax
Administrators” 2017, in his inaugural speech the Hon’ble Prime Minister pointed
out the huge amount of pending arrears and has desired that an Action Plan may
be put in place to eliminate pendency. Consequent to the Hon’ble Prime
Minister’s directions, Commissioner (TAR) has proposed that being the only
officer in TAR, it becomes impossible for him to attend meetings for write-off
of arrears all over India, Similarly in the Committee of Chief Commissioners,
Chief Commissioner (TAR) / DGPM is also a member in the Committees all over
India, Being in charge of DGPM, he too cannot attend all the meetings in this
regard which causes delay in write off of tax arrears. Commissioner (TAR) has
requested that the name of both the officers Chief Commissioner (TAR) / DGPM and
Commissioner (TAR), may be deleted from these two Committees.

4. The matter has been examined. It has been decided that in place of DG
(DGPM) and Commissioner (TAR), other Chief Commissioner or Equivalent /
Commissioners available in the zone may be included in the Committee.
Consequently, the constitution of the Committees and the powers to write off,
delegated to the competent authorities are as under:-

Sl. No.

Competent Authority

Constitution of the Committee

Powers delegated

1

Chief Commissioner GST & CX

Committee of three Chief Commissioners of GST & CX or Equivalent
rank officers.

(a) Full powers for abandonment of irrecoverable amounts of fines
and penalties imposed under Customs Act, 1962, and Central Excise Act,
1944.(b) To write off irrecoverable amounts of Customs/Central Excise
duties upto Rs. 15 lakh subject to a report to the Board.

(a) Full powers for abandonment of irrecoverable amounts of fines
and penalties imposed under Customs Act, 1962, and Central Excise Act,
1944. (b) To write off irrecoverable amounts of Customs/Central Excise
duties upto Rs. 10 lakh subject to a report to the Chief Commissioner.

5. As regards write off of interest amount, it is clarified that once duty/
tax involved is written off, the interest due thereon would get automatically
written off. It is also clarified that the duty/ tax involved in the case would
determine the level of authority/Committee competent to write off the amount
involved.

6. The field formations are, therefore, directed to take action on the above
lines. If any difficulty is faced, the same should be brought to the notice of
the Board.

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